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To: yard_man who wrote (101117)	5/9/2001 10:49:21 PM
From: MythMan	Read Replies (1) \| Respond to of 436258

I assume you mean east coast and yeah the nicer areas are rented a year in advance in most cases.

To: yard_man who wrote (101117)	5/10/2001 6:53:26 AM
From: rolatzi	Read Replies (1) \| Respond to of 436258

coastal real estate: I realized two year ago that coastal real estate would be a good diversification and allow me to remove some of my investment from the stock market. The real estate market on Cape Cod was already booming but in the two years since has continued to appreciate probably by around 20% per year or more. The outer cape has particular conditions which create a shortage, namely zoning ( large lot sizes), national seashore which claims 50-70 percent of the land and which restricts further development, milder climate than the rest of the area, destination as a possible retirement site for boomers and proximity to a large metropolitan area. Even now, with a building boom, the available housing stock for sale is small. Nonetheless, while rents are obscene, the season is too short to earn a positive cash flow even if you rent the house for all of July and August and for some weeks in June and September. There are additional tax advantages which make the flow a little closer to positive and if you consider the pay out of principle as enforced savings, the overall picture is not bad. It will be interesting to see how such real estate behaves in the next few years as the economy deflates and inflates at the same time. Clearly inflation in the short term will help, while increasing long term interest rates will decrease demand. Also if you at some point use the home as a primary residence for five years, the tax laws allow you to sell without paying any capital gains. (excepting, recapture of depreciation). In general, the tax laws have always been more generous for an individual's real estate than stocks. rolatzi